In
winter 1383, the center for Research of Majlis Shura Islamic of Iran (CRMSII)
published a proposal on the logic of the prevailing profit rate that the
commercial banks pay/charge on long-term bank loans requiring the executive
branch of Islamic Republic to lower the average rate of profit by 4.5 percent
within 18 months of passage of the bill by Majlis, to reduce government budget
deficit by 20 billion rials, to reduce another 4% in the profit rates all
within two years after passage of the bill and to provide quarterly report to
the Majlis on implementation of the law by the executive branch. In what
follows, I would state and examine both empirically and theoretically, the
validity of the arguments in support of legislative action on defending the
rates of profits charged and paid by the banks.